Many of the highest performing stocks are in technology companies. These companies' innovations create services and products integral to daily life and are upending traditional industries and business models. Investors craving the explosive growth potential of these innovations can look no further than the best tech stocks to buy now.
Technology stocks come in all shapes and sizes, from well-known global enterprises such as Amazon (NASDAQ: AMZN), Facebook (NASDAQ: FB), and Alibaba (NYSE: BABA) to smaller startups just making their IPOs that could potentially offer massive returns to early investors. The key to seeing a big return on investment (ROI) is picking the right stocks at the right time.
We are entering the hot summer months. While for many, that means heading for the beach and the mountains to get out of the sweltering city, markets will be staying hot too. That means tech stocks will be even hotter.
The Fed says they will remain in what they call an accommodative mode, so low-interest rates will continue to drive stock prices higher. The end of the pandemic gets closer every day, and both individuals and corporations are beginning to loosen the purse strings.
That's the perfect background for owning fast-growing technology company stocks that are developing products and programs that are changing the world in the blink of an eye.
To make sure you don't miss out on any of the summer's hottest stocks, we've got the best tech stocks to buy in June…
The rollout of 5G networks continues across the globe, and that is the technology development that could have the biggest impact on the world over the next few years. As we have seen in the recent pandemic, the faster the broadband speeds and the wider the bandwidths are, the better the world functions.
At the heart of the 5G revolution is Aviat Networks Inc. (NASDAQ: AVNW). Aviat sells a range of wireless networking products, solutions, and services in North America, Africa, the Middle East, Europe, Russia, Latin America, and the Asia Pacific.
Maybe that sounds boring but what they really sell is all the technology that makes the internet work faster and more efficiently, which means the world works faster and more efficiently.
Aviat is the pure-play microwave solutions company for 5G networks. Microwave signals are faster than light through fiber and will be a huge part of major 5G networks.
There is another huge growth opportunity in front of Aviat Technologies right now. The Biden infrastructure plan calls for $100 billion to be spent getting high-speed broadband services ot the rural parts of the nations. Aviat has been involved in rural broadband projects for years and stands ready to help build the future in those areas.
That same expertise can help bring the internet to emerging economies around the world, and Aviat expects to see growth opportunities from those markets as well.
Aviat is also the leader in using microwave technology for private markets for utilities, law enforcement, and government agencies.
Aviat has been a steady grower, and the company looks poised to see growth accelerate thanks to massive spending to roll out 5G and bring broadbands to rural America.
Another company that looks poised to blast off as we enter the summer is Israeli semiconductor equipment manufacturer Camtek Ltd. (NASDAQ: CAMT). Camtek makes products that allow manufactures to improve yields and drive down costs.
That's critically important right now as semiconductor companies scramble to produce enough chips to meet the demand. There is a shortage of semiconductors around the world, and it has bought some industries like auto manufacturing to a standstill.
Virtually every social, demographic and economic trend will drive demand for semiconductors and semiconductor testing equipment like the products Camtek provides. We are moving from the growth of PCs and the internet as the big demand driver for the semiconductor industry into the age of big data as the driver.
Big data is smart homes.
Big data is 5G.
Big data is artificial intelligence.
Big data is electric vehicles and driverless cars.
Big data is smartphones.
And big data needs semiconductor chips.
Chip manufacturers need the products produced by Camtek to produce the chips quickly, cheaply, and profitably.
Camtek has already been growing at a torrid pace. In the first quarter of 2021, revenues were up year over year by over 90%. The company expects revenues to be up by more than 80% on a year-over-year basis in the second quarter of the year.
Camtek has doubled revenue every four years.
Wall Street analysts are just discovering the stock and have been scrambling to keep up with Camtek's growth trajectory. Estimates have been raised for the next two quarters and full-year 2021 and 2022 several times over the last three months.
Institutions are starting to notice the stock too. Their buying pressure drove the stock back to new highs last week. Buyers in the first quarter included well know growth stock investors like Ark Investments and Driehaus Capital.
The positive earnings surprises, analyst estimate increases, and institutional buying pressure can combine to send stocks dramatically higher very quickly, and Camtek shares seem to be setting up for a massive June surprise to the upside.
Bentley Systems Inc. (NASDAQ: BSY) sells software to the people that plan, design, and build infrastructure. These include engineers, architects, and construction firms. As money begins to flow into rebuilding infrastructure, there will be more demand for Bentley's software.
Its software can be used to design bridges, mines, dams, and factories. Architects can also use their products for site plans, rail network planning, and treatment plant analysis. Before the first shovel of dirt is turned in, the designers and builders can have the project all laid out using software from Bentley Systems.
Bentley's software creates digital workflow between architects, engineers, and construction companies both in the office and in the field to ensure projects run smoothly and according to plan.
A lot of new infrastructure projects will come online over the next few years, and that's going to create demand for the software sold by Bentley Systems.
As requested by the president, the infrastructure bill calls for billions of dollars to be sent in updating schools and expanding broadband access to everyone in the United States. That will create enormous demand for fiber optic products, and our next stock to own in May is going to be a huge beneficiary of that demand.
Clearfield Inc. (NASDAQ: CLFD) sells pretty much everything you need to deploy a fiber network, including frames and cabinets, optical components, cable and drop assemblies, terminals and cabinets, and wall boxes.
Clearfield's customers are broadband service providers, including the large national carriers, local companies, utilities, and municipalities.
There were already huge opportunities for Clearfield from the rollout of 5G and the continued adoption of cloud computing and data centers. Add in government-mandated expansion and updates to the nation's fiber-optic grid, and business is about to go from good to great.
The latest earnings report gives some idea of just how good the business is right now. Sales were up 45% year over year while the backlog of work rose by more than 100% compared to the first quarter of 2020. Gross profit margins climbed from 39% to 43.6%. As a result of the powerful sales increase combined with margin improvement, earnings exploded from just $0.05 last year to $0.27 this year.
That's year-over-year earnings growth of more than 400%.
Our final tech stock to buy for May is Micron Technology Inc. (NASDAQ: MU).
Micron is one of the largest players in the market for computer memory chips. There is enormous demand for its chips from the smartphone and PC markets. 5G and artificial intelligence will also drive demand for memory chips, which should drive additional revenue and earnings.
The demand for 5G phones will explode, and the higher-end phones require more memory than ever.
According to Micron, servers using AI require six times as many memory chips as traditional servers.
We should also see increased demand from the data center markets starting in the second half of the year. Memory usage in autonomous vehicles is going to be enormous as well.
Demand is growing for Micron semiconductor chips, and the company is scrambling to meet the demand.
The burgeoning demand situation has Micron management excited about its prospects for 2021. It expects sales to rise by more than 30%. The surge, along with improved margins, should lead to more than 90% year-over-year earnings growth.
That should send the stock price soaring for the rest of this year.
To help you find the best stocks to buy, Money Morning gives you insight into which stocks we see as good buys, which stocks should be avoided, and what news matters in the Dow Jones everyday.
The best tech stocks to buy now are often stocks with strong upward momentum. One big benefit of buying tech stocks is how much growth potential the sector offers. Some high growth stocks may not be profitable yet are difficult to evaluate using traditional metrics. That is why looking for tech stocks that have been moving higher can be a good indicator that more people want to buy them and that they're riding a trend. A good way to examine growth and momentum is by evaluating a key piece of technical analysis called the moving average.
• Moving Average – A stock's moving average (MA) is the average closing price over a certain time period, like 20 days, 50 days, or 200 days. It's used to get a baseline for where the stock is trading that removes any short-term fluctuations. When a stock is trading above its 20- or 50-day MA, it shows good upward momentum.
Fundamentals are, simply put, data that can potentially impact the price of a company’s stock. Factors included in a fundamental analysis of a company can include its management of capital, its cash flow, profit retention, funding for growth and research and development, and more.
The fundamentals of technology stocks are an important part of evaluating their potential. This is because well-established tech companies such as Google and Microsoft that boast solid fundamentals have also proven their ability to maintain leadership in their markets.
A valuable fundamental to consider is earnings per share:
• Earnings Per Share (EPS) Growth – Earnings per share refer to the company's profit divided by its outstanding shares. Strong growth in EPS means a bigger ROI. EPS growth of 25% or more over a 12-month period is a good sign.
A successful track record isn’t always an indicator that a company is offering one of the best tech stocks to buy now. In addition to looking at recent earnings, it’s important to consider the stock’s price-to-earnings ratio (P/E).
P/E compares the price of a share in a company to its earnings per share. A high P/E means that a stock’s price is expensive compared to its earnings and is potentially overvalued.
A low P/E means that a stock is cheap compared to its earnings and could be undervalued. Buying undervalued stocks is an important part of value investing. Each sector has its own "normal" P/E ratio. Tech stocks typically have high P/Es because there's high future growth anticipated.
Tech stocks can be purchased just like any other stocks. You can buy stocks in individual companies which you have studied and believe will give you a solid ROI.
Having a hard time dividing which stock is right for you? Maybe you can choose to invest in an ETF or mutual fund. By doing so, you get exposure to multiple stocks that are picked by the fund manager. Funds can be focused on IPOs, companies that give dividends, high-growth companies, specific sectors in the tech sphere, and more.
Although ETFs give you broader exposure to the tech market as a whole, owning the best technology stocks individually offers savvy investors a better chance at making more money than by simply looking into ETFs.
Investing in tech companies is popular because it is an exciting way to profit on some of the fastest growing businesses in the world. Early investors in some of the biggest tech companies have seen massive returns. For example, Amazon stock, which is now worth thousands of dollars, had an IPO of $18.
While not every stock is going to skyrocket the way Amazon has, there is still plenty of room for growth in the tech world and the opportunity for smart investors to pick stocks with a bright future.
Nowadays, package delivery seems to be a usually seamless, hassle-free process, thanks to high-tech robots and intricate logistics AI.
And the best part is, the same $158 billion technology that allows FedEx to easily "accomplish the impossible" is coming into Americans' homes... .
Stocks are off to a wild start this year as the GameStop (NYSE: GME) saga sent markets into a frenzy.
But this volatility knocked many excellent tech stocks are off their highs for no particular reason.
That's an opportunity for us.
This means great stocks can be found at a discount and can make for a great entry point if you might have missed out on a big run up.
I'm looking at companies where the story hasn't changed, only the share price.
These companies are still leaders in the major themes I've looked at over the past year.
I'm talking about e-commerce, connected TV and the growth in digital data.
That's giving you the perfect opportunity to buy these top tech stocks at a great discount...
The GameStop saga might be coming to an end soon - shares have fallen as low as $81 as of midday Tuesday.
Let's be clear: The tech trend underlying this remarkable story isn't over by a long shot. There's much more disruption to come.
I'm talking about financial technology - "fintech."
Fintech is what's enabled the exponential, rapid growth of mobile investing and trading apps like Robinhood, which has in turn opened up the capital markets to more than 12 million new investors over the course of the pandemic.
Fintech is about much more than trading; it's about much more than payments.
It's changing how people invest, shop, save, pay - how people deal with money, period. Fintech "touches" around 5% of global e-commerce sales (excluding China). That sounds miniscule, at first, but we're talking big bucks here - around $166 billion and counting.
If you were wondering if you should buy Apple stock, don't wait too long.
Before 2021 is over Apple will introduce its first major product line since the Apple Watch.
Like the Watch, this new device will be wearable. While it won't look out of the ordinary, it will be capable of some extraordinary things.
And it will be a key catalyst in driving the next big Apple stock rally...
Cybersecurity will be one of the Biden administration’s top priorities, especially after the fairly recent SolarWinds attacks.
Indeed, global cybersecurity could potentially grow to $281 billion by 2029.
And this cybersecurity firm specializing in preventing critical attacks could not only help the government defend America, but also hand you double the profits… .
Facebook’s currently in the middle of a controversy over the role “Big Tech” should – or shouldn’t – play in regulating speech, with the federal government and some 46 state attorneys general actively seeking the breakup of the world’s most successful social media site.
Playing this space just right can give savvy tech investors double the market’s return….
It is amazing to think Western Union debuted the first electronic fund transfer 150 years ago in 1871.
Way before the internet, computers and even the telephone, this first payment was done via the telegraph and proved to be immensely successful.
Today, it's grown into an entire industry of it's own: fintech.
Now the industry today is much more than sending payments.
It's managing funds, trading stocks, cryptocurrency, lending, payment plans and much more, all conducted through apps on your phone or on a computer.
Now, I'm looking at another fintech opportunity for our readers.
It's one you won't want to miss...
This will be the year of the SPAC.
But not all SPACs are worth buying.
With over 200 blank-check companies reaching public markets in 2020 it pays to be selective.
Some SPAC mergers have been big let downs for investors.
But the most successful SPACs have had one thing in common: excellent management.
As a technology investor, I have been watching many of these companies form and I've been digging into the management behind each and every one of them to share with you what is on the horizon.
There are the three best SPACs to watch right now...
Google and Facebook are selling off right now because investors are worried about regulator lawsuits – here’s how to play them.
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When you think advertising, Madison Avenue should come to mind; TV, radio, and print have been dominant advertising tools for decades.
But digital advertising is about to change all that.
Indeed, the advertising company Michael's showing you today zoomed nearly 400% since its March lows, and it's just getting started... .
If 2020 holds any lessons for us - and I think it does - surely the power of preparedness is right up there.
This past year was remarkable in many ways, but what stood out to me most in 2020 was the rapid adoption of tech in business. In short, the coronavirus pandemic forced most companies to adapt to remote work. Those that couldn't suffered; brick-and-mortar business was one of COVID-19's biggest casualties.
In this environment, three industries quickly emerged as frontrunners, and my experience tells me they'll build on and even exceed that performance in the year ahead of us; I'll be watching these like a hawk in 2021, because I expect to see substantial growth and, even better, outsized returns for folks with the wisdom to get in on the ground floor... Full Story
The $2 trillion tech sector became the ace up America’s sleeve during the COVID-19 pandemic.
Indeed, 2020 was the year tech saved America and 2021 will be the year it helps make regular investors a fortune, particularly if they focus here….
As 5G expands throughout the world of mobile technology, Qualcomm Inc.
(NASDAQ: QCOM) will continue to be a major player in the global rollout.
Qualcomm is a global leader in developing, supplying, and licensing the technology to connect people to 5G through their mobile devices.
The market is so massive.
There are more mobile devices than toothbrushes in the world, after all... QCOM stock has been on the rise in 2020 (up 66%) as mobile phone usage is increasing.
And as 5G continues to expand, investors should expect QCOM stock to rise with it for years to come.
The exploding demand for this technology includes the new 5G iPhone, makes this a tech stock worth looking at.
Qualcomm is the driving force behind 5G, and its launch, development, and expansion.
Here is our complete analysis of the company, including our Qualcomm stock prediction.
There’s a leader in the e-commerce space whose stock costs less than one-third of Amazon even though its earnings are growing 10% faster.
Today Michael’s going to show you how this market-crusher could double again in less than two years and why it’s a profitable addition to your portfolio….
Dear Elon: Congratulations - Tesla stock is up 549% year-over-year.
No doubt, five consecutive quarters of profit really riled up those short sellers you hate so much.
Yes, the future is bright.
Real bright.
But if you want it to stay bright, there's a catch... You have to do it all again.
Or one electric vehicle (EV) stock is going to eat your lunch.
